RHI Magnesita to invest Euro20m in Chizhou dolomite plant

China: Austria’s RHI Magnesita plans to invest Euro20m in its dolomite plant in China. It is intended to address global pressures in the supply of raw materials to the refractory industry and ‘rapidly’ provide additional volumes to its customers worldwide. In the medium term more than 250 jobs will be created at the brick plant and raw material mine in Chizhou.

The Chizhou site includes an ‘extensive’ dolomite mine and raw material production as well as facilities for the production of high-quality dolomite-based finished products. Successful trials are already underway in the brick plant in Chizhou where it is planned to start production by the beginning of 2019. The raw dolomite mine is planned to resume operation by the end of 2019. This overall investment will eventually lead to the creation of up to 250 jobs.

“After the completion of the investment, RHI Magnesita will be able to offer a fully integrated dolomite source in each of the big regions of the world to our customers and simultaneously offer dual sourcing options,” said Stefan Borgas, the chief executive officer (CEO) of RHI Magnesita. He added that the investment will allow the company to offer its customers in Asia shorter lead times and provide additional capacity to customers in North America, Europe and Asia from local sources.

Borgas went on to say that stricter environmental regulations in China have led to local plant closures, resulting in shortages of both magnesite and dolomite, ‘dramatic’ increases in raw material cost and supply security issues. These developments have accelerated the shift from magnesia- to dolomite based products. High stainless steel production has further fuelled demand for refractory products and compounded the pressure on raw material supplies.